Iowa Administrative Code Agency 187 - Banking Division
Here’s an overview of Iowa Administrative Code, Agency 187 – Banking Division, as current as of mid‑2025:
📘 Code Structure
Agency 187—Banking Division is organized into chapters covering diverse regulatory responsibilities:
Chapter 1 – Description of Organization (Rules 187‑1.1 to 1.4)
Defines the Division, its scope, the Superintendent’s role, bureaus, etPurpose of Agency 187 – Banking Division
Agency 187 establishes the rules, structure, and responsibilities of the Banking Division in Iowa. Its primary goal is to oversee and regulate banking institutions within the state to ensure financial stability, consumer protection, and safe banking practices.
Key Functions of the Banking Division
1. Licensing and Chartering of Banks
The Division is responsible for authorizing banks to operate in Iowa.
It evaluates applications for new banks, branch offices, or changes in ownership.
Maintains records of all licensed banks and their operational status.
2. Supervision and Examination
Regularly monitors the financial health of banks.
Conducts examinations of bank operations, including accounting, loans, deposits, and management practices.
Ensures that banks comply with internal policies, safety procedures, and operational standards.
3. Consumer Protection
Implements rules to protect bank customers.
Monitors fair lending practices, transparency in fees, and disclosure requirements.
Handles complaints and investigations related to customer grievances.
4. Safety and Soundness Standards
Ensures banks maintain adequate capital, liquidity, and risk management practices.
Establishes minimum operational standards to reduce the chance of bank failures.
Monitors internal controls and governance to safeguard public deposits.
5. Regulatory Oversight
Sets rules for bank operations, including accounting, recordkeeping, and reporting requirements.
Approves or rejects bank policies for loans, investments, and other financial services.
Can issue fines, warnings, or take corrective action against banks that fail to comply.
6. Financial Reporting
Banks must submit regular reports to the Division detailing assets, liabilities, capital, and loan performance.
Ensures transparency and allows the Division to detect problems early.
7. Examination of Specialized Institutions
Oversees state-chartered credit unions, trust companies, and other financial entities if applicable.
Establishes rules for the operation, safety, and consumer protection of these institutions.
Board or Division Structure
Leadership: Typically headed by a Superintendent or Director.
Staff: Includes examiners, auditors, compliance officers, and support staff.
Meetings and Reports: The Division may hold meetings to review policies, issue guidance, and publish reports on the banking sector.
Enforcement and Compliance
The Division can take disciplinary action against banks that violate rules.
Actions can include fines, restrictions on operations, or revocation of licenses.
Encourages voluntary compliance through guidance, warnings, and audits.
Impact of Agency 187
Ensures financial stability of Iowa banks.
Protects consumers and depositors from fraud or unsafe banking practices.
Promotes public trust in the banking system.
Maintains transparent and accountable banking operations.
✅ In summary:
Iowa Administrative Code Agency 187 – Banking Division creates a regulatory framework for licensing, supervising, and monitoring banks in Iowa. It ensures safety, soundness, and consumer protection while providing oversight of banking operations and enforcing compliance with operational standards.c. (law.cornell.edu)
Chapter 2 – Application Procedures (Rules 187‑2.1 to 2.19)
Procedures for bank formation, conversions, mergers, branching, investments, securities sales, mobile offices, and more. (law.cornell.edu, legis.iowa.gov)
Chapter 3 – Reserved
Chapter 4 – State Banking Council (Rules 187‑4.1 to 4.5)
Chapter 5 – Petitions for Rule Making
Chapter 6 – Declaratory Orders
Chapter 7 – Public Records & Fair Information Practices (Rules 187‑7.1 to 7.16) (law.cornell.edu)
Chapter 8 – General Banking Powers (Rules 187‑8.1 to 8.10) (law.cornell.edu)
Chapter 9 – Investment & Lending Powers (Rules 187‑9.1 to 9.3) (law.cornell.edu)
Chapter 10 – Electronic Transfer of Funds (Rules 187‑10.1 to 10.6)
Chapter 11 – Contested Cases (Rules 187‑11.1 to 11.31)
Chapter 12 – Uniform Waiver Rules (Rules 187‑12.1 to 12.11)
Chapter 15 – Regulated Loans (Rules 187‑15.1 to 15.13)
Chapter 16 – Industrial Loans (Rules 187‑16.1 to 16.30)
Chapter 17 – Delayed Deposit (“Payday”) Services (Rules 187‑17.1 to 17.13)
Chapter 18 – Mortgage Bankers, Mortgage Brokers, and Closing Agents (Rules 187‑18.1 to 18.25)
Chapter 19 – Mortgage Loan Originators (Rules 187‑19.1 to 19.15) (law.cornell.edu, regulations.justia.com)
Chapter 20 – Debt Management (Rules 187‑20.1 to 20.13) (law.cornell.edu)
Chapters 21–24 – Reserved
Chapter 25 – Appraisal Management Companies (Rules 187‑25.1 to 25.13) (law.cornell.edu)
📄 Key Highlights
Agency 187‑1.3:
Outlines the Division’s internal structure—Superintendent plus three bureaus (Bank Bureau, Finance Bureau, Professional Licensing). (law.cornell.edu)
Chapter 2:
Covers chartering, conversions, mergers, branch/courier/mobile office applications, changes in control, securities activities, and investment authority.
Chapter 7:
Establishes public access to records under fair information practices. (legis.iowa.gov)
Chapters 8 & 9:
Define what qualifies as a bank and establish investment, lending, and real-estate lending standards.
🔍 Accessing the Code
You can view or download the official PDF via the Iowa Legislature website, which reflects updates through April 16, 2025 (legis.iowa.gov).
For chapter‑specific browsing, refer to the Iowa Legislature's rule listings by chapter and publication date (e.g. Chapter 2 as of Nov 13, 2024; Chapter 7 as of June 25, 2025). (legis.iowa.gov)
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